It's not just an education savings account

The Massachusetts 529 plan, MEFA's U.Fund College Investing Plan, is a tax-advantaged investment plan, professionally managed by Fidelity, to help reach your child's educational dreams.

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529 plan investment options

When you open a 529 plan account, you get to decide which investment strategy works best for you. The first question: Do you want to manage your investments or do you want Fidelity to do it for you?

Please note that you can change the investment instructions on your future contributions at any time. But under federal tax rules governing 529 plans, you can reallocate your current plan's investments only twice per calendar year or whenever you change beneficiaries, without incurring federal taxes.

Our Age-Based Strategy includes portfolios that are managed according to the beneficiary's birth year with the asset allocation automatically becoming more conservative as the beneficiary nears college age.

Your beneficiary's birth year will help determine the Age-Based Portfolio in which you'll invest. This strategy offers a choice of 3 types of funds:

Fidelity Funds

• Seek to beat a major market index over the long term
• Portfolios invest solely in Fidelity Funds
• Managed by dedicated Fidelity portfolio managers

Multi-Firm Funds

• Seek to beat a major market index over the long term
• Portfolios invest across multiple fund companies, offering an opportunity to diversify your funds
• Managed by dedicated Fidelity portfolio managers

Fidelity Index Funds

• Seek to closely mirror the performance of a major market index over the long term
• Portfolios invest solely in Fidelity Index Funds
• Passively managed; securities currently held in the respective index determine investments

Fidelity may use its proprietary asset allocation research to make active asset allocation decisions in the Age-Based Portfolios that invest in Fidelity Funds and Multi-Firm Funds. Such active asset allocation decisions may better enable the portfolios to take advantage of short- to medium-term opportunities and market conditions. Although an active asset allocation strategy is designed to add value, there is no guarantee any value will be added, and the strategy may result in losses to the portfolios. Please review a 529 plan Fact Kit for more information on portfolio asset allocation.

Asset allocation for Age-Based Portfolios

Beneficiary birth year Portfolio*
Asset Allocation
U.S. Equity
Non-U.S. Equity
2017–2019 Portfolio 2036
2014–2016 Portfolio 2033
2011–2013 Portfolio 2030
2008–2010 Portfolio 2027
2005–2007 Portfolio 2024
2002–2004 Portfolio 2021
1999–2001 Portfolio 2018
1998 & Earlier College Portfolio

* The Age-Based Fidelity Funds, Multi-Firm, and Fidelity Index portfolios take a more aggressive approach during the early years of saving for college to take advantage of potential growth opportunities, while investing to preserve capital as the need to pay for qualified higher education expenses approaches. Keep in mind that the investment risk of each Age-Based Portfolio changes along with the target asset allocation.

For investors who prefer to manage their own asset allocations, our Custom Strategy provides the flexibility you'll need to build your own customized approach to college saving and investing.

This strategy allows you to create an investment mix from portfolios that fall into 4 categories:

Static Portfolios

  • Asset mix remains the same over time
  • 2 investment choices: Fidelity Funds and Fidelity Index Funds

Individual Fund Portfolios

  • Options include a mix of equity, fixed income, and money market portfolios
  • Each portfolio has the same investment objective as its underlying mutual fund

Bank Deposit Portfolio1

  • Composed exclusively of a deposit in an FDIC-insured, interest-bearing account2
  • Seeks preservation of principal and is designed for beneficiaries of any age

Age-Based Portfolios

  • Managed according to the approximate year the beneficiary is projected to enter college, becoming more conservative over time
  • 3 investment choices: Fidelity Funds, Multi-Firm Funds, or Fidelity Index Funds

Custom Strategy allocation choices

When you choose the Custom Strategy, you'll have the opportunity to allocate funds in 5% increments. You may allocate money to any number of funds you'd like, as long as your total equals 100%.

Portfolio type Allocation choices
Static Portfolios Aggressive Growth Portfolio (Fidelity Funds)
Moderate Growth Portfolio (Fidelity Funds)
Conservative Portfolio (Fidelity Funds)
Aggressive Growth Portfolio (Fidelity Index Funds)
Moderate Growth Portfolio (Fidelity Index Funds)
Conservative Portfolio (Fidelity Index Funds)
Individual Fund Portfolios Money Market Portfolio
Fidelity 500 Index Portfolio
Total Market Index Portfolio
International Index Portfolio
Intermediate Treasury Index Portfolio
Bank Deposit Portfolio Bank Deposit Portfolio
Age-Based Portfolios Age-Based Portfolio (Fidelity Funds)
Age-Based Portfolio (Fidelity Index Funds)
Age-Based Portfolio (Multi-Firm)

Learn more

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